Correlation Between Oppenheimer Intl and Glg Intl

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Can any of the company-specific risk be diversified away by investing in both Oppenheimer Intl and Glg Intl at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Oppenheimer Intl and Glg Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Intl Small and Glg Intl Small, you can compare the effects of market volatilities on Oppenheimer Intl and Glg Intl and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Oppenheimer Intl with a short position of Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Intl and Glg Intl.

Diversification Opportunities for Oppenheimer Intl and Glg Intl

0.74
  Correlation Coefficient

Poor diversification

The 3 months correlation between Oppenheimer and Glg is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Intl Small and Glg Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glg Intl Small and Oppenheimer Intl is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Oppenheimer Intl Small are associated (or correlated) with Glg Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glg Intl Small has no effect on the direction of Oppenheimer Intl i.e., Oppenheimer Intl and Glg Intl go up and down completely randomly.

Pair Corralation between Oppenheimer Intl and Glg Intl

Assuming the 90 days horizon Oppenheimer Intl is expected to generate 1.27 times less return on investment than Glg Intl. But when comparing it to its historical volatility, Oppenheimer Intl Small is 1.03 times less risky than Glg Intl. It trades about 0.2 of its potential returns per unit of risk. Glg Intl Small is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  8,727  in Glg Intl Small on April 22, 2025 and sell it today you would earn a total of  298.00  from holding Glg Intl Small or generate 3.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Oppenheimer Intl Small  vs.  Glg Intl Small

 Performance 
       Timeline  
Oppenheimer Intl Small 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Intl Small are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Oppenheimer Intl may actually be approaching a critical reversion point that can send shares even higher in August 2025.
Glg Intl Small 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Glg Intl Small are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Glg Intl showed solid returns over the last few months and may actually be approaching a breakup point.

Oppenheimer Intl and Glg Intl Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oppenheimer Intl and Glg Intl

The main advantage of trading using opposite Oppenheimer Intl and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Intl position performs unexpectedly, Glg Intl can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Glg Intl will offset losses from the drop in Glg Intl's long position.
The idea behind Oppenheimer Intl Small and Glg Intl Small pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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